Variable Cost

Coursework : Suppose that the total cost function TC(q) is differentiable, which is the sum of variable cost VC and fixed cost FC.  Let MC and AVC be marginal cost and average variable cost, respectively. Prove: if MC>AVC, AVC increases; if MC < AVC, AVC decreases.

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Coursework Suppose that the total cost function TC(q) is differentiable, which is the sum of variable cost VC and fixed cost FC.  Let MC and AVC be marginal cost and average variable cost, respectively. Prove: if MC>AVC, AVC increases; if MC < AVC, AVC decreases; at the minimum of AVC, AVC=MC.

Economic Problems: with supported workings, show which combination of products to be produced will achieve the highest profit for the company.

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Economic Problems Zebra Ltd (Extra Practice Question) It has three products all of which require the same production facilities. Financial data on the three products are as follows: Product                                                X             Y              Z £ … Read more